7 Ways to Become a Millionaire

You may be a bum wishing to have a million bucks or an aspiring young professional who wants to know if you are on the right path.

Some become millionaires by pure luck, while as others are rewarded for their planning and wits. With some effort you can have a big fat bank account one day, too.

Whatever the case may be, here are seven ways to become a millionaire.

1. Win the Lottery

Without a doubt, this is the quickest way to become a millionaire. I was in Vegas the other day, and there are a ton of ways to strike it big as well. The problem? Your chances are one in a billion. Good luck and start rolling the dice if this is the way you want to pursue wealth.

2. Be Innovative

Most people believe that the easy inventions are already out in the marketplace but yet, new gadgets come out every day. Ideas are everywhere, so put on your thinking caps. If you aren’t the thinking type, you can always…

3. Learn from Madoff

You will also be on the front page of every newspaper and be in jail for 150 years but at least your wife can enjoy a good life with money you stole from other people.

If you take this path by the way, let me know so I can report you.

4. Corporate Slave

Okay, this is the first way to be a millionaire while avoiding the headlines. Many high paid professionals end up with significant wealth built up. Of course, they get beaten up at work daily as they climb the corporate ladder and then pay obscene amounts of government taxes afterward, but hey, nothing is going to stop you from becoming a millionaire right?

6. Marry Rich

If you go to any bars or restaurants that are within close proximity to high end neighborhoods, you will see many very attractive ladies at the bar. There are some fairy tales alright, but most die trying.

7. Save Your Ass Off Millionaire

You can keep trying, but this is exactly how most of us will become a millionaire. It’s not glamorous like winning the nobel prize but no one will bother you (that’s a good thing when you are wealthy) because no one will ever know you are rich either.

Since this is actually the most probable way of becoming a millionaire, I’ve outlined a few steps you can take.

1. Generate Some Income

All the rubbish about a penny saved equal two pennies earned is true because pondering about that all day will save you exactly two pennies. If you ever want to save enough money to make your family proud, start earning some to begin with. This includes:

Stop watching TV. But everyone watches TV. Yes, couch potato the third, that’s why so few ever become millionaires. While you are watching TV, your competition, the more successful and the people you envy are all making money. Stop watching TV. In fact, cancel it if you always give in.

Working smarter and harder at work – If you have to choose between the two, please err on the side of being smart. Be friendly and helpful to coworkers, know when you should work hard and when to say no to distractions.

Get a side job – If you are earning less than $40,000 and trying to feed a family of four, you could probably write a book on money saving advice. Stop reading up on frugal living and write about it instead. Start your own business and earn more money (here are 15 ways to do so).

2. Save Some of It

Alright, what I said in step one was misleading (it wouldn’t be the first time so stop complaining). After you have decent income coming in every month, you need to save at least some of it. How much? It all depends on how fast you want to become a millionaire. There’s no right or wrong answer. No pain, no gain my friend.

Extra: What a tip? Start by resisting the temptation to improve your standard of living too quickly. It’s fun when you start going to fancier restaurants and living in bigger houses but there’s no going back (or at least without major pain). You can always spend more later, and there is absolutely no rush.

3. Investing It in Diversified Index Funds

I keep telling everyone that I’m becoming an index fund convert. No, I’m not those that liked index funds from the get go or someone who lost a bunch of money in the stock market betting on individual securities. In fact, I made a small fortune in the stock market. But it was risky, tiring, frustrating and stressful. I wanted a life. If you really want to be a millionaire, stick with index funds. You don’t need the crap and you don’t want to buy tissues after you bought Bear Sterns based on rumors that it was good value.

You are probably thinking right now: “Tell me something I don’t know.”

Well, if you know everything already, why aren’t you a millionaire? Don’t be a smart bum that knows everything. Be a millionaire that got started reading and applying every common sense advice ever written.

Does saving money make you millionaire?
Ans: (Never ever)
You have to save for investing, not saving for saving. it doesn’t make sense, even millionaire recommends you to invest in long term, which probably gives you more than you expected.

Regardless of your background, income or situation I firmly believe if you stick to certain habits for 35-45 years you will retire a millionaire. Time is the biggest factor and contributing to investment accounts every month for as much as you can afford will get you there. Just can’t get emotional when the market has a recession and sell at bottom.

for me most important thing to earn first million is innovation and motivation, you must be able to risk something hard. you should develop entrepreneurship skills. I do not agree that if you work in corporation and you are ‘slave’ of company can not develop that kind of skills, you should learn from your manager, CEO and ect. I know that Securitas epay CEO started job from very very bottom and could become inventor of such product.

It has been said before, I don’t think most people are capable of being their own boss or inventing something. Invest regularly and spend less. On a note, I did marry well. My wife is a Partner at a Big Four accounting firm so we are able to save 40% of our income and still spend $85K a year doing almost whatever we want.

Why do you assume anyone that works for a corporation is a slave? There are plenty of good companies out there. Not everyone is cut out to be an entrepreneur. We made our first million by working at companies.

I’m 60 yrs. old an I have found in my lifetime that accumulating wealth is more about controlling your spending rather than increasing your income. Spending less on TV is a start. I also don’t own an iphone or even a cell phone for that matter. I live in a warm climate so I ride a motorcycle instead of a car. I stopped using my central air-conditioning and bought window units instead, my electric bill was reduced from $500 per month to $75! That’s like getting a $425 per month pay raise. Keep more of the money you earn.

Not many people have become millionaires by for working for a living. Earning money is bottom of the pile, followed by making money, then finally top of the list is creating money… out of thin air. That’s what I am aiming for.

you have to have disposal income to start investing. If you are in debt, you need to pay off the debt first or you will never be out of debt. Paying off a house is a debate that many have. If you have car/credit card debt, pay those off first. Then, The simplest way to invest is to go to Vanguard/Fidelity, pick your Brokerage house and set up a brokerage account and start to buy an index mutual fund that contains the total US stock market and a fund that contains the total international stock market. you are now diversified and own every stock. the aveage, basic investor will never pick the correct stock to make them money. Just buy index funds since they are the cheapest funds to own. If the Dow goes up 10%, your fund goes up 10%. .001% of the money managers can consistently beat the market and you will never have access to those people. Then if you get more education and understand the mutual funds, you can move in ETFs, which are mutual funds that trade like stocks. Most of these are cheaper than mutual funds. Do some research and look at the expense ratio of what these funds charge to hold. That is your single most important factor. A mutual fund with a 1% expense will eat 20% of your profit if the fund earns 5%. ETFs and some Index mutual funds have an expense ratio of less than .15%, some lower than .10% because they are not actively managed. Go to Vanguard.com and learn about the mutual funds and ETFs.

Great post! Although I think winning the lottery is out the statistical probability for most of us.

One way to become a millionaire that you didn’t directly mention was by learning to emulate others who have already had succeed. Whether that is an entrepreneur or an investment manager find out what makes them successful and apply the same rules. Millionaires always have smart habits, like investing the excess of their earnings vs. spending them, that when done over time can translate into success for you as well.

Millonaires don’t buy new cars every 5 years. They don’t live in large houses. Many are self employed. Just these two items would free up $500 a month for most. Investing $500 a month will get you to millionaire status in 20 years. Obviously, the more you can save, the quicker you get there. Another obviously flaw, if your household income is less than $50K a year, it is much harder to accomplish, which is why the car you drive will significantly alter how much you can save. Read the Millionaire Next Door or The wealthy barber.

I like how you mentioned the lottery as your first point, but then pointed out that your chances are pretty slim! Too many people trust in the lottery to win big, work is a better method, and I know you agree! Thanks for a great post!

No, you have to have the ability to save money. Hanging out with millionaires doesn’t make you one unless you emulate what they do. Not everyone is a doctor or lawyer, but I know plenty of broke lawyers.

Your article is both funny, and true. The humorous ways you outlined in the beginning really will make you a millionaire, they are shortcuts, no doubt, but what’s wrong with that? No need to sneer at those who succeed the easy way!

I recently stopped contributing to my 401k. My company does not match it and my investment options were limited. Instead I now take what I was saving and put it in index funds and ETFs. Uncle Sam takes more now, but my returns will be bigger in the long run. Plus I have control over what I invest in. Non-matched 401ks are nothing more than a savings account at the mercy of someone else running it. Growth opportunities and disciplined saving doing it myself far outweigh any tax advantages of my 401k over the life my saving.

Motivation is really important thing.
Self-motivate yourself is not easy. But staying motivated more difficult.
if you save $1 day, for 15 years with compound interest you make a million dollars. Some kind of myth or something.
But everything is possible.

How about, wasting time reading “How to Be a Millionaire” articles on the internet and just follow the basics you have learned already and stick to it ;).

Just do it. -Nike

My two cents… Start a side business while you’re still at your day job. Pay off all debts. Allocate your profits wisely – 30% Keep, 30% Growth (reinvest), 30% Dreams, 10% Play Money.

Keep your plan simple and stick to it. First years are grueling, 3rd year things start to materialize. Biggest problem I see with today’s generation is everyone is so damn impatient and a bunch of “on-demand” kids. Everyone wants to get rich, famous quick instead of putting in the work. They quit just when things are going to happen for them. #weak.

Great read..It took me a little longer to slow down the improved qualitiy of life pace..I am now 40 have over 150k annually income but just starting out on the savings & retirement..No wife, kids or debt..but what chance do I have to retire at 60?

Chuck, what is the point of being a millionaire if you do not have the main beauties of life? No family no kids where you can come after work and enjoy. I do not envy you at all. Your life is nothing but work.

Another option is listen to people who have been where you are and have what you want. This is what I have done to make more money and increase my quality of life. I am currently being mentored by multi-millionaires from all different backgrounds on a daily basis. A key point in becoming successful is believing you can. Napoleon Hill said it best “Whatever the mind of man can conceive, and bring itself to believe, it can achieve.”

Another tip: Pay for everything in cash, never finance with loans or with credit cards. Save up the money first, then make your purchase. People would be shocked if they actually calculated up how much money they spend on interest every year on all those credit cards, car loans, etc.

I’d say the one exception to this is maybe a house. Even with that, only take out a 15 year mortgage and try to pay it off early.

I agree, living within your means and managing your money is important to get ahead financially. Another suggestion for how to become a millionaire is to collect your debts promptly and efficiently. Remember, if someone owes you money, it could be sitting in the bank earning you interest so they are really taking you to the cleaners the longer the debt goes on.

I think the ultimate way to become a millionaire is to EARN MORE and DESIRE LESS. Earning more increases your income i.e. (taking a second job, investing your money, buying assets that provide passive income, etc.) while desiring less lessens your spending (i.e. budgeting, frugality, etc.)

Make it a habit and definitely, you would become a millionaire someday

Is a great idea to have a second job,but what if you don’t have a job at all?With this economy we are lucky to make money just to have food to eat..MILLIONAIRE??…Nah,is just a dream…I need a job just to keep me alive.

T V ? For the last 2 yrs we cut out our cable subscription and found out it was the best thing we had ever did.We spent more time together as a family . I also started to do more things at work and at home .I started to think about investing and staying home to take care of my family .Can investing be a life time stay at home job or a living . ? Can anyone give me a suitable advice .?

Another way to make money is to play to your strengths and start a very small venture based on it. I knit very well, and instead of starting a shop of my own, i sell the stuff i make to baby boutiques and make a nice profit. You could do the same with baked goods, artwork, or even decorations.

When it comes to money, there are three types of people. Those who are happy with an average income and a safe, secure job, but ambitious; those who are a bit entrepreneurial and will take some calculated risk in order for the potential to enjoy limitless income; and there are those who have no goals at all and just assume life will take care of itself.

Investing in a well-chosen dividend shares in a diversiferad portpolio is enough and perhaps among the simplest and best way to become a millionaire. But one very important rule that one should re-invest the dividends. Otherwise it like investing in index fonds.

Great post. I did a similar one in the beginning of June. Here is my list:

Be born into it– pure luck of the draw
Marry into it– they say you earn every penny
Win the lottery– better chance of being struck by lightening
Be a celebrity– might end up waiting tables
Be an athlete– don’t bet on it
Steal it– like small spaces with bars?
Earn it– over an entire lifetime
Start saving and investing– from the cradle
Counterfeit it– did I mention small spaces with bars?
Be a business owner . . .

“While you are watching TV, your competition, the more successful and the people you envy are all making money.”

I love this. It doesn’t just apply to television. I have to limit the amount of time I spend aimlessly surfing the internet. Time flies when you’re wasting it.

What motivates me is thinking about all the people with seemingly successful businesses who, in my humble opinion, are far less qualified and competent than me. More important than anything else, these people take action. I’m learning to do the same.

It is not so much a big idea that makes it big but how to execute an idea, even a medicore one, well that is the key. I think its a bit misleading to think of an idea to make millions. Many a tech start-up has died terrible deaths with that thinking. A better approach is to take an existing idea or business model and improve on it. After all, MS has made billions being 2nd into the market.

This is good advice. Especially about increasing your standard of living slowly. I am almost 30 now and I have spent the larger part of my 20’s increasing my standard of living. While it has been great it has also come with a cost. So I say to everyone, control your spending.

I have a monthly net income of $1,794 and am 32 currently. I have worked to reduce my current debts and should be completely debt free by February 2012. It is my hope and intent to have significant savings, boosted via compound interest by the time I hit 50 which is in the next 18 years.

What do you suggest I do in terms of saving and investing, i.e., how much should I put up in liquid cash for emergency money and how much in investment money to go towards retirement? I welcome any sage advice on this as I want to do it right while I am young and able to do so.

First of all, I want to congratulate you on becoming debt free at 32. However, you have a long life ahead of you, and to sustain this seems implausible. The fact that you are thinking of where to put your money is great. Firstly, you must protect yourself. Eg.. have Critial illness Insurance or Disability Ins in place before you start to “invest”. Secondly, have an Insured Retirement Plan in place. This is a life insurance vehicle that has investments growing inside it tax free until the day you die. If done properly, it will never be taxed as well.

When it is time to invest, invest in low cost index funds that mirror the US equity market, some real estate and foreign stocks. You can be diversified with less that six funds. Learn to invest yourself and pay for advice every 3-4 years to make sure you are on the right track. Invest every month. Invest more in major dips in the market. The market has never been down over the course of 30 years. There will be 4-5 recessions in your lifetime. Know that these are the crucial buying opportunities. Don’t buy a car new unless you plan to keep it over 10 years, even then, buy a 2 year old car and keep it 10 years. Always pay cash for a cash, never finance it. You end up spending more. Buy a house that the payment is 10% of your salary and a 15 year mortgage, not 25%. then if you lose your job, the payment is easier to make.
These decisions will help you become a millionaire quicker than your friends. $20,000 here, $30,000 there will become much more over the course of the next 30 years.

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